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Carbon Markets

Overview of Revaia services

The Australian Carbon Market was initiated with the enactment of the Carbon Credits (Carbon Farming Initiative) Act 2011 (CFI Act 2011). This voluntary carbon offsets program is part of Australia’s broader strategy to combat climate change, offering financial incentives for landholders to implement management practices that enhance carbon storage or lower greenhouse gas emissions.

In 2014, the CFI Act was amended to incorporate the Emission Reduction Fund (ERF) and the Safeguard Mechanism, further expanding the framework to support Australia’s climate goals.

Now called the ACCU Scheme, the carbon market operates alongside the now-operational Safeguard Mechanism, mandating decarbonisation among Australia’s largest emitters.

What is Carbon Farming?

Carbon farming involves land management practices that capture and store carbon dioxide in vegetation and soils. It’s a powerful tool in the fight against climate change and can provide landholders with additional revenue streams.

Carbon Farming Initiative (CFI)

An Australian government program that allows farmers and land managers to earn carbon credits by storing carbon or reducing greenhouse gas emissions on their land. These credits can then be sold to businesses or governments wishing to offset their emissions.

Emission Reduction Fund (ERF)

Australia’s primary government program for purchasing carbon credits. Projects that reduce greenhouse gas emissions, including carbon farming projects, can earn Australian Carbon Credit Units (ACCUs) through the ERF.

The Safeguard Mechanism

A policy under the ERF that sets a baseline level of emissions for large industrial facilities. Companies exceeding their baselines must purchase ACCUs to offset the excess, creating demand for carbon credits.

Australian Carbon Credit Units (ACCU)

A tradable unit representing one ton of carbon dioxide equivalent (CO2e) stored or avoided through an approved emissions reduction project. ACCUs can be sold to the Australian government through the ERF or in the voluntary market.

Carbon Abatement Contract (CAC)

A contract between the Australian government and a project proponent under the ERF, where the government agrees to purchase a specified number of ACCUs from the project over time.

Australian National Registry of Emissions Units (ANREU)

The official registry that tracks the issuance, transfer, and retirement of emissions units, including ACCUs, under the Australian government’s carbon pricing mechanism. All ACCUs must be held and transferred through ANREU.

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